Black Market Gambling Spreads as UK Enforcement Lags

(AsiaGameHub) –   The UK’s attempts to control unregulated gambling providers face a core challenge: the black market consistently stays one step ahead of enforcement actions. A recent report by fraud expert Alex Wood, commissioned by Flutter UK & Ireland, reveals that illegal betting sites remain easily accessible and are often openly advertised.

Numerous Sites Failed to Implement Even Basic Safeguards

Several of Wood’s findings highlight a startling lack of due diligence. In tests conducted ahead of the Cheltenham Festival, he created accounts on offshore gambling platforms using clearly fake identities. These included names of well-known racing figures like Harry Skelton, Jack Kennedy, and trainer Willie Mullins. Addresses such as “Cheltenham racecourse” were accepted without any challenge.

In a case that’s both amusing and concerning, Wood registered under the name Red Rum, listing his occupation as “racehorse” and his address as “horse heaven.” Another platform allowed him to sign up as a six-year-old residing at Buckingham Palace. These identity verification failures underscore why offshore betting sites may be particularly appealing to users looking to bypass safeguards like self-exclusion schemes.

The report prominently features brands such as MyStake, Velobet, and Cosmobet. MyStake, in particular, recently faced controversy after announcing a high-profile partnership with soccer star Ronaldinho. These claims have since been debunked, as evidence suggests the photo of the famed athlete shaking hands with MyStake’s CEO may have been fabricated.

Enforcement Efforts Are Still Inadequate

For regulators, the problem isn’t just the existence of these platforms—it’s how they reach customers. According to Wood, social media is a key driver in acquiring new users. His Instagram feed quickly filled with posts directing people to offshore bookmakers, often via tipsters and influencer accounts. Some links led to private groups on messaging apps, where betting advice and referral codes were shared freely.

I’ve been stunned by the sheer volume of illegal, unlicensed gambling content being pushed and promoted online, and social media companies have serious questions to answer.

Alex Wood

In one instance, Wood asked Meta AI about offshore gambling options and received links to some especially problematic black market websites that aggressively targeted UK users. Payments are another vulnerability: most sites operating outside UK regulations still allow customers to use common payment methods, including bank cards and digital wallets. This makes the switch from a regulated to an unregulated environment nearly frictionless for the average user.

The issue is only worsening. Illegal operators now account for roughly 9% of the UK gambling market, a significant increase from previous years. This shift could weaken the Treasury’s recent efforts to secure additional revenue by raising gambling taxes. Regulated operators are increasingly calling for improved collaboration between the government, regulators, and technology companies—especially regarding advertising and payment systems.